Dive Brief:
- CoreLogic’s latest Home Price Index report found that home prices in the U.S., including distressed sales, increased 1.1% between January and February, and 6.8% between February 2015 and February 2016.
- CoreLogic also predicted that home prices will rise 0.6% from February to March, and 5.2% from February 2016 to February 2017.
- February's 1.1 % price gain was higher than CoreLogic's prediction last month of a 0.5% rise.
Dive Insight:
CoreLogic President and CEO Anand Nallathambi reported that home prices in every state have seen year-over-year increases in the last 12 months. Nallathambi added, "Improved economic conditions and tight inventories continue to drive exceptionally strong gains in many markets, especially for homes priced below $500,000."
CoreLogic Chief Economist Frank Nothaft said the drop in fixed-rate mortgages in the first quarter of 2016, as well as the 209,000 jobs added, will help realize the company’s predictions for the next 12 months.
According to the latest S&P/Case-Shiller U.S. National Home Price Index, which monitors repeat sales for homes in the nine Census divisions, year-to-year home prices rose from 5.3% in December to 5.4% in January, which was twice the rate of both inflation and wages.
David M. Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, told Forbes late last month that the most recent Index report reflects low market inventory, which is preventing current homeowners from upgrading to a newer home. Blitzer also said that many homebuyers are still fighting a tight credit environment and are having trouble financing a home.
